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Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 7.00 4.00 Sales (45,000 units) Variable expenses Contribution
Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $ 7.00 4.00 Sales (45,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 315,000 180,000 135,000 48,000 $ 87,000 $ 3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 18%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of units sold decreases by 4%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 15%
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